Asda owners to sell 27 forecourts to avoid probe

Asda's new owners have offered to sell 27 of their petrol forecourts to ease fears of potential fuel price hikes.

It comes after the Competition and Markets Authority found "local competition concerns" after Zuber and Mohsin Issa agreed to buy Asda for £6.8bn last year.

The brothers will sell 27 of the 395 EG Group petrol filling stations they own.

The CMA said it has "reasonable grounds to believe the proposed remedies might be accepted."

The watchdog found concerns in 37 areas of the UK after the brothers and TDR Capital took over Asda and its 323 petrol stations.

The deal to buy the UK's third-largest supermarket chain from its US owner Walmart was announced in October last year.

Zuber and Mohsin Issa

The CMA launched an initial inquiry into the takeover in December to see if it would lead to a "substantial lessening of competition".

The CMA feared that the purchase of Asda could lead to higher petrol prices in some parts of the country.

In April it warned: "Right now, we're concerned the merger could lead to higher prices for motorists in certain parts of the UK. However, if the companies can provide a clear-cut solution to address our concerns, we won't carry out an in-depth Phase 2 investigation."

On Wednesday it said the offer to sell 27 forecourts should avoid the need for a full-blown probe.

It said: "The CMA considers that there are reasonable grounds for believing that the undertakings offered jointly by Mr Zuber Issa, Mr Mohsin Issa and TDR Capital, might be accepted by the CMA under the Enterprise Act 2002."